HOUSTON, TX, March 9, 2012 /PRNewswire/ - Enhanced Oil Resources Inc. (TSX-V: EOR) is pleased to provide the following update regarding the Company's operations activity for March.
As previously reported the Company's goal for 2012 is, among other things, to add production and reserves through infill drilling at the Milnesand and Chaveroo oil fields, located in Chavez and Roosevelt Counties, New Mexico and to further the approval and construction of a 41 mile CO2 pipeline, by September 2015, to connect Kinder Morgan's Cortez CO2 pipeline to our Milnesand and Chaveroo oil fields.
Oil production volumes for February averaged approximately 365 bopd, an increase of approximately 65 bopd since January. The increase is principally related to the Crossroads 105 well, which has averaged over 70 bopd since being reactivated in early February. We are currently working on the Crossroads 106 well to convert that well to a second water injector in order to add oil production capacity where we believe we have additional productive potential in the field. We are reviewing our options to bring our 303 well back to production and will start that work once the 106 conversion is completed. We expect that our oil production can increase substantially once our infill drilling activity at Milnesand and exploitation activity at Crossroads is initiated.
The Company had previously announced that it would start its infill program at the Milnesand Unit in early March, following meetings with the various regulatory bodies. We have since been told that due to the Lesser Prairie Chicken breeding season we cannot commence drilling until June 16th at the earliest. It should be noted that there are no active Prairie Chicken Leks in the Milnesand Unit, but the area is part of a broadly defined drilling moratorium on certain federal lands in New Mexico blanketed by the Department of the Interior. In the meantime we are preparing the drilling locations for, and completing well bore integrity evaluations of, the initial three lateral infill wells which will be drilled utilizing existing wellbores in the Unit. We are also designing and intend to initiate a modern fracture stimulation program for the Unit on certain currently productive wells, which would commence in the spring. As part of our agreed compliance activities for the Milnesand Unit, we have also contracted a plugging rig to complete a four well plugging obligation and have been advised that the contractor will arrive on location early next week.
At Crossroads field we have contracted a 3-Dimensional seismic crew to acquire the first ever 3-D seismic survey at that field and expect to have that program completed by the end of 2nd quarter, 2012.
In Texas, we have identified several wells as work over candidates and expect to initiate those operations shortly. We will continue to evaluate results from these properties to determine if further activity is then warranted.
Following the recent sale of the St Johns field we are in the process of updating and amending our website to reflect the new focus for the Company. We expect to have our new website on line within the next few weeks.
The Company will hold a conference call for shareholders and interested parties in April to outline the business plan for 2012. We will provide dial-in details once they are confirmed.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an early-stage company, with a principal goal of increasing crude oil and natural gas production through enhanced oil recovery ("EOR") and infill drilling projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose.
Certain statements contained herein are "forward-looking statements" and "forward-looking information" under applicable securities laws, including statements regarding beliefs, plans, expectations or intentions regarding the future relating to Enhanced Oil Resources Inc.'s operations, business prospects, expansion plans and strategies.
Forward-looking information typically contains statements with words such as "intends", "anticipate", "estimate", "expect", "potential", "could", "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking statements because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved. Forward-looking statements are based on the opinion and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Although Enhanced Oil Resources believes that the expectations reflected in such forward-looking statements are reasonable, Enhanced Oil Resources can give no assurance that such expectations will prove to be correct. Assumptions upon which such forward-looking statements are based include that the Company will be able to carry out its proposed activity for 2012, that there will be accelerated development of our oil reserves, that production increases from our oilfields will be added, that our infill program will commence as expected and that our Crossroads 3-D seismic program will commence as expected. Readers should refer to Enhanced Oil Resources' current filings, which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this news release are made as of the date hereof and Enhanced Oil Resources undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
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SOURCE Enhanced Oil Resources Inc.